|28 January 2014:|
Does DONG Energy Pursue the Wrong Targets?
I have been reluctant to contribute to the debate on the future of DONG Energy because I do not know much more than what has been presented by the media. I think that the current discussion on the sale of DONG Energy shares to Goldman Sachs reveals more questions than answers.
How did DONG Energy lose so much money?
DONG Energy has lost DKK 5 billion in 2012.
The agreement with Goldman Sachs is based on a valuation of DONG Energy A/S of DKK 31.5 billion which is considerably below the equity. Thus the value of DONG Energy's assets seems to be overestimated.
Why did the Danish state accept the conditions in the agreement with Goldman Sachs?
Why is it so important to DONG Energy to expand abroad?
This is aparently a risky business area. The price of reducing that risk will be the loss of influence which is reflected in the agreement with Goldman Sachs. The green policy is simply expensive.
Several politicians in the parties which are supposed to support the agreement have raised the issue of postponing the final decision in order to consider possible alternatives.
The most obvious alternative would be to limit the ambitions of DONG Energy to a level which DONG Energy can afford and to business areas serving Danish consumers.
Opdateret d. 29.1.2014